Hide summary
Faced with the challenge of financing social protection, the French state is attacking certain privileges from which we benefit. New measures which particularly target retirees. A tax credit, widely used by seniors, could see a downward revision!
The CPO and the reform of tax benefits for retirees
The tax advantages granted to retirees raise questions of inequality. At least this is what the Council for Compulsory Deductions (CPO) was able to observe in its latest report. Remember that these measures aim to support the often modest purchasing power of seniors.
In France, the reform of tax advantages seems to be inevitable. And for good reason, a large part of public finances would be devoted to retirees. This, due to their number which is in strong growth in recent years.
According to experts, this aging of the population is one of the probable reasons explaining this inequality in tax advantages. When it comes to taxes, some retirees are doing quite well, compared to others who are struggling to get their heads above water.
To have
Pensions, Agirc-Arco: the CSG rate changes, the new thresholds in 2025
That said, the financing of the pension system lacks equity in France. The Council, faced with pressure from the Court of Auditors to increase taxes, is proposing solutions to counter the risks. One of them is to plan a considerable advantage for retirees.
This tax credit is a preferred target
This tax credit allows retirees to recover 50% of the expenses incurred for employing an employee at home. A device which allows in particular to finance household help. Although very useful for seniors, its high cost is lacking, which could lead to its reduction.
In the CPO report, the Council recommends reduce the tax credit to 40%. A measure that would allow the State to save more than 750 million euros per year! To see more clearly, let's find out how this modification is introduced into the daily lives of retirees.
For an individual spending 10,000 euros per year, their tax credit amounts to 5,000 euros with the current rate of 50%. If the government applies the reduction to 40%, the tax credit then increases to 4 000 euros. A difference that will not go unnoticed by retirees.
Moreover, such a measure risks compromise quality of life and autonomy retirees. With this adjustment, they would be forced to reduce the use of home services. This could lead to difficulties for companies operating in the sector.
To have
Good news for these retirees: more than €70 per month on your Agirc-Arrco pension, how to benefit from it
Are there other financing alternatives for retirees?
There are no miracle solutions for financing the dependency of retirees. However, the State could explore other avenues without having to resort to reducing tax advantages. In particular, it would be possible toincrease social security contributionswhile avoiding penalizing low wages. This could make it possible to free up additional resources for financing.
Furthermore, the savings devices are also resources that can be explored. The development of investments dedicated to dependency can encourage individuals to anticipate their future needs. Finally, it goes without saying for the State to optimize social assistance. Dependency allowances would be very welcome for retirees!
